[Centurion2000]

Mind you, I think this trend is going to blow up in a lot of companies faces. They're losing a LOT of intellectual capital, and adding a lot of administrative/communication overhead where they've never had it before.

Just wait until one nation nationalizes all information industries and the information CONTENTS of those data centers.

How would America like to have tax forms and other credit and identity level information in the hands of say the Chicoms ?
Talk about a SERIOUS backlash.

Capital One once had an Indian call center and then closed it. The potential information risk/backlash was too much.

[Snuffington]

Capital One once had an Indian call center and then closed it. The potential information risk/backlash was too much.

You're exactly right. New privacy laws have the potential to shut huge Indian operations down overnight. And that's not even counting simple bad PR from customers above and beyond the law. That's another "gotcha" plenty of companies don't see coming.

[LibertyAndJusticeForAll]

With a few others, I've been posting that these databases are a national security risk but have yet to see a journalist pick it up and run with it. The closest I've seen is this article regarding the semiconductor industry as a potential risk:
http://www.freerepublic.com/focus/f-news/922087/posts

One "free-traitor" argued that he/she would just sue the corporation that allowed the cyber terrorism or identify theft to occur. I pointed out that the risks to doing business in these countries are underwritten by the U.S. taxpayer through OPIC, so that in essence, the lawsuit would be against oneself. I asked this "free-traitor" if he/she expected the police of these foreign countries to arrest the perpetrators.
I never knew about Capital One. That looks like an avenue that should be explored.